But official statistics released last week showed average wages are falling while inflation has risen to 1.9%.

Mr Carney said Britain is “more than halfway” to economic recovery but that low wages remain one of the key risks to Britain.

“There are multiple headwinds for the British economy,” he said. “A very weak Europe, the persistent strength of the pound... and British households that are still heavily indebted – not least because they haven’t seen real wages increase.”

A report last month by the Resolution Foundation warned the number of households in “debt peril” could double if interest rates rise. The think tank forecast 1.2million households will be spending more than half their disposable income on debt repayments by 2017.

Senior economist Matthew Whittaker said there was a “real prospect” many families could “collapse” under the weight of their debts if mortgage payments rise significantly.